Alerus Financial (NASDAQ:ALRS) Shares Gap Up After Earnings Beat

Key Points

• Alerus Financial's stock price increased significantly from a previous close of $21.72 to an opening price of $22.90 after the company reported $0.72 earnings per share, surpassing analyst expectations of $0.56.
• The company announced a quarterly dividend increase from $0.20 to $0.21 per share, resulting in an annualized dividend of $0.84 and a yield of 3.61%.
• Analysts have increased their price targets for Alerus Financial, with Piper Sandler raising theirs from $22.00 to $23.00, indicating a positive outlook for the stock.

Alerus Financial (NASDAQ:ALRS - Get Free Report)'s share price gapped up before the market opened on Monday after the company announced better than expected quarterly earnings. The stock had previously closed at $21.72, but opened at $22.90. Alerus Financial shares last traded at $23.58, with a volume of 40,799 shares.

The company reported $0.72 EPS for the quarter, beating analysts' consensus estimates of $0.56 by $0.16. The firm had revenue of $74.80 million for the quarter, compared to analysts' expectations of $69.96 million. Alerus Financial had a return on equity of 10.58% and a net margin of 11.06%.

Alerus Financial Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 11th. Investors of record on Friday, June 27th were issued a dividend of $0.21 per share. This is a boost from Alerus Financial's previous quarterly dividend of $0.20. The ex-dividend date of this dividend was Friday, June 27th. This represents a $0.84 dividend on an annualized basis and a yield of 3.73%. Alerus Financial's dividend payout ratio is 68.85%.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Raymond James Financial reissued an "outperform" rating and set a $27.00 price objective (up previously from $24.00) on shares of Alerus Financial in a report on Tuesday. DA Davidson upped their target price on Alerus Financial from $20.00 to $25.00 and gave the stock a "neutral" rating in a research note on Tuesday. Keefe, Bruyette & Woods upped their target price on Alerus Financial from $22.00 to $25.00 and gave the stock a "market perform" rating in a research note on Tuesday. Finally, Piper Sandler upped their target price on Alerus Financial from $22.00 to $23.00 and gave the stock a "neutral" rating in a research note on Friday, May 2nd.

Hedge Funds Weigh In On Alerus Financial

Several institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of Alerus Financial by 13.2% during the 1st quarter. Vanguard Group Inc. now owns 1,194,264 shares of the company's stock valued at $22,046,000 after purchasing an additional 139,435 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Alerus Financial by 120.0% during the 4th quarter. Dimensional Fund Advisors LP now owns 666,559 shares of the company's stock valued at $12,824,000 after purchasing an additional 363,617 shares during the last quarter. Endeavour Capital Advisors Inc. increased its position in shares of Alerus Financial by 77.3% during the 4th quarter. Endeavour Capital Advisors Inc. now owns 527,283 shares of the company's stock valued at $10,145,000 after purchasing an additional 229,932 shares during the last quarter. Geode Capital Management LLC grew its position in Alerus Financial by 26.0% during the 4th quarter. Geode Capital Management LLC now owns 524,195 shares of the company's stock worth $10,088,000 after acquiring an additional 108,123 shares during the last quarter. Finally, Ameriprise Financial Inc. grew its position in Alerus Financial by 0.5% during the 4th quarter. Ameriprise Financial Inc. now owns 367,173 shares of the company's stock worth $7,064,000 after acquiring an additional 1,958 shares during the last quarter. 51.25% of the stock is currently owned by institutional investors.

Alerus Financial Trading Down 2.5%

The firm has a 50-day moving average of $21.72 and a 200-day moving average of $20.29. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.87 and a current ratio of 0.87. The firm has a market capitalization of $570.57 million, a P/E ratio of 13.31 and a beta of 0.70.

Alerus Financial Company Profile

Alerus Financial Corporation operates as the bank holding company for Alerus Financial, National Association that engages in the provision of various financial services to businesses and consumers. The company operates in four segments: Banking, Mortgage, Retirement and Benefit Services, and Wealth Management.